CEA's Hazard Reduction Discount (HRD) is an opportunity to offer a discounted premium to policyholders with eligible older houses that have been properly seismically retrofitted. Here are some tips to help you navigate the HRD:
1. Take a look to see if your client's house qualifies for the HRD.
Here are some questions to ask your client:
- Has your house been retrofitted? Properly retrofitted houses sustain less damage in contrast to a comparable home that has not been retrofitted. This means a quicker recovery after a damaging earthquake.
- Are you getting the HRD? Single-family houses built before 1979 that meet the HRD criteria are eligible for a discounted premium.
- Do you have the best coverage options for you? Use the HRD review time as an opportunity to make sure your existing insureds are not only receiving the HRD, if eligible, but have the best combination of coverages and deductibles that meets their budget and coverage needs.
2. Make sure qualified clients are at least getting the 5% self-verified discount.
The 5% HRD discount is self-verified, so it doesn’t require an inspection.
If your client qualifies for the 10% of 20% discount, a licensed contractor or a civil or structural engineer will need to sign and complete the CEA Earthquake Dwelling Retrofit Verification form.
3. Keep following up.
If your clients are eligible to receive the 10% or 20% HRD, but haven't yet found a contractor to sign the verification form, keep following up and encourage them to get the form completed and sent to you. The contractor directory from Earthquake Brace + Bolt is a great starting resource.
In the long run, the savings for your client will be more than any upfront cost a contractor may charge to inspect the house. Remember, everyone loves to save money, and your clients will be grateful you took the time to help them save!
Also, keep checking in with the Earthquake Brace + Bolt (EBB) program, which provides financial assistance for seismic retrofits in select zip codes.